Should I file my tax return before the passing of the stimulus package?

January 27, 2008 2:50 PM

[TaxReturnFilter] Should I file my tax return before this economic stimulus package is passed through Congress?

I'm a single dependent, residing in Maryland and I was about to file my tax return to get a healthy chunk of change ready to be processed by the IRS, when I read about President Bush's proposed economic stimulus package. According to my cursory knowledge about the stimulus package, there will be tax return ramifications or perhaps a rebate of some kind. The question is, should I hold off on filing my return until this is passed, with hopes of garnering a larger return, or will this be a non-factor?

Many thanks,

posted by stratastar to law & government (8 comments total)

You could always amend your return with a 1040X later, if necessary.
posted by grouse at 2:54 PM on January 27, 2008

Since the stimulus package would be going into effect in 2008, wouldn't this be an issue for the tax return you file in 2009 (instead of the one you're filing now - for 2007's income)?
posted by youngergirl44 at 3:06 PM on January 27, 2008

Regardless of which tax year the rebate applies to, your date of filing will make no difference.
posted by Tomorrowful at 3:07 PM on January 27, 2008

Non-factor -- the 'rebate' will be the same for everyone, and it appears that, barring change when the bill goes through the Senate, it will apply only to people who filed a return *last* year. Don't change your behavior in any way -- file your return normally. Nothing you do will alter the way the money comes to you. My gut tells me that because you're a dependent, the rebate will actually come to your parents, bundled with theirs; couples get $1200, and then for each child, they'll get $300, as I understand it.
posted by incessant at 3:08 PM on January 27, 2008

I'm not an expert, but my understanding is that the stimulus only interacts with your tax filing in that the income you report is used to compute how much of a rebate you are owed. Last time they did this the rebate came in the form of a separate check, not in the form of a larger refundMSNBC backing me up, sort of:

Keep in mind this rebate has nothing to do with the refund you may be owed from having too much withholding taken from your paycheck. The rebates won’t effect that refund.

And everything talks about it applying to everyone who earned a paycheck in 2007, so surely they aren't going to have it apply just to people who file after it's passed.
posted by epugachev at 3:09 PM on January 27, 2008

FYI If you're a single dependent you may qualify to file using a 1040EZ. And if I were you I'd just get it done early to get it out of the way.
posted by andrewdunn at 3:50 PM on January 27, 2008

This "rebate" will be automatic, if it does pass. It won't matter if you file now or later.
posted by CwgrlUp at 4:46 PM on January 28, 2008

"The vast majority of Americans who qualify for an economic stimulus payment will not have to do anything other than file their 2007 individual income tax return to receive their payment this year. They will not have to complete applications, file any extra forms or call the Internal Revenue Service to request the payment, which is automatic. The IRS will determine eligibility, figure the amount and issue the payment.

Stimulus payments will be direct deposited for taxpayers selecting that option when filing their 2007 tax returns. Taxpayers who have already filed with direct deposit won't need to do anything else to receive the stimulus payment. For taxpayers who haven't filed their 2007 returns yet, the IRS reminds them that direct deposit is the fastest way to get both regular refunds and stimulus payments.

The IRS will use the 2007 tax return to determine eligibility and calculate the basic amount of the payment."

http://www.irs.gov/newsroom/article/0,,id=179095,00.html
posted by Feisty at 9:42 PM on February 14, 2008